Question

I have been paying off old debts on my credit report. I called a creditor who last reported on my credit report in 2011 with an outstanding balance of 1390, and when I called and asked for a settlement (the creditor is a debt collector), they asked for over $2000 (they not only weren't willing to settle but wanted a sum more than my credit report). Is this allowed?

All Responses

They are allowed to add on certain fees and costs (like interest, attorney fees, etc.). You should ask them for a breakdown of the balance due and get it in writing before you pay them off. If the date it went delinquent is close to 7 years ago, you can wait for it to fall off your report rather than pay them, entirely up to you.

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